3. Suppose the net replacement cost (NRC) of existing wet is $15,000, the liquidation value (LV of existing assets is $5,000 in year 0, and the discount rate is 10%. Excluding the opportunity cost of existing assets, the net benefits of with expansion and without expansion are shown in this table: net benefits without expansion net benefits with expansion 2,500 2,500 2,500 3,500 2,500 3,500 2,500 3,500 a) What is the net present value of the project without the expansion? b) If the expansion costs $1.500 in vear 0. what is the net present value of the project with the expansion? c) What is your policy recommendation? d) Sketch a diagram to decide whether to evaluate the opportunity cost of existing assets at the net replacement cost or liquidation value